Read, Shop & Share Everything on Wheels

Shop

Ev Tax

General Motors has no issues with the idea of better roads for Michigan, but when it comes to a special plug-in vehicle tax enacted to help pay for those repairs, the automaker is crying foul, Automotive News says.

States and municipalities are getting creative as they look for ways to raise tax revenues from electric cars. More and more plug-in vehicles are on the roads each year, and as gasoline-engine vehicles become more fuel efficient, there's simply less fuel tax revenue coming in. New Jersey is considering a tax scheme that will seem more reasonable to some and unfair to others.

Anyone purchasing an EV in the state of Washington will have to pay an extra $100 with their registration – a bit counter-intuitive, considering that the government generally promotes EV purchases with incentives. You see, owners of gasoline-powered vehicles in WA pay an annual gasoline tax, and this new EV fee ensures that all drivers pay for the annual upkeep of roads.

Opting to buy a battery-powered vehicle means that owners no longer need gasoline and, therefore, don't have to pay gas taxes. Right? Well, for residents of the state of Washington, that sort of depends on the outcome of Senate Bill 5251.

Drivers in Maryland now have two new reasons to opt for a plug-in electric vehicle the next time go new car shopping. Governor Martin O'Malley (above) has reportedly signed bills this week that provide for car pool lane access for plug-in vehicles and a new $2,000 tax break. The High Occupancy Vehicle lane access is valid for three years starting this October for "qualified" vehicles equipped with a special permit. Buyers will also receive an instant $2,000 break on excise taxes at the time of

Making the transition to electrified vehicles will bring with it a vast array of issues that will need to be dealt with. There are, of course, the obvious problems of charging EVs in urban areas and disposal and recycling of batteries. Then there is the problem of taxation. Vehicles need paved roads to travel on. Paving costs a lot of money. While there are some toll roads in the U.S. that drivers pay to traverse, most infrastructure is financed through fuel taxes. The presumption is that the am